EURUSD rose through 1.0975 during the New York session on Tuesday, inching closer to resistance at the 1.1035 level. The single currency pair has slipped since then and is trading close to 1.0950 at this point in writing. A bearish reaction here still remains a possibility as the pair is testing the 0.88% Fibonacci retracement (not shown here). A consistent push above 1.0975 will negate the bearish setup.
EURUSD is producing a larger-degree correction from the earlier 1.1035 high. The first wave completed at around 1.0535 and the second wave produced a complex correction towards 1.0975. If the bears are able to hold prices below 1.1035, prices will soon turn lower towards 1.0500 and down to 1.0100 in the next few weeks.
EURUSD needs to break below 1.0750 at least to confirm that the bears are back in control. Also, note that the Fibonacci 0.618 retracement of the earlier rally between 0.9535 and 1.1035 is seen passing through 1.0100. A high probability remains for a bullish bounce if prices manage to drop through those levels (1.0100) going forward.
Trading idea:A potential drop against 1.1035
Good luck!